4
What is Retailing? Retailing - Consists of the final activities and steps needed to place merchandise made elsewhere into the hands of the consumer or to provide services to the consumer. Any firm that sells a product or provides a service to the final consumer is said to be performing the retailing function. LO 1

6
Issues in Retailing  How can we best serve our customers while earning a fair profit?  How can we stand out in a highly competitive environment where consumers have too many choices?  How can we grow our business, while retaining a core of loyal customers?

7
Successful retailers must: – become more service-oriented – offer better value in price and quality – be more promotion-oriented, and – be better attuned to their customers’ needs. LO 1

8
Profit growth in retailing? – increasing same-store sales at the expense of the competition’s market share or – by reducing expenses without reducing services to the point of losing customers. As stores increase in size the retailer often employs a scrambled merchandising strategy. Scrambled merchandising - Exists when a retailer handles many different and unrelated items. – It is the result of the pressure being placed on many retailers to increase profits. LO 1

9
Private label branding Occurs when a retailer develops its own brand name and contracts with a manufacturer to produce the merchandise with the retailer’s brand on it instead of the manufacturer’s name. Also called store branding. LO 2

10
Location Retailers are now aware that opportunities exist in new non-traditional retail areas. Retailers are reaching out for alternative retail sites, rather than simply renovating the existing stores. Today, the most significant of the new nontraditional shopping locations could be the one which combines culture with entertainment or shopping. LO 2

11
Retailing-Two Career Paths LO 3

12
2 UNIT 2 Building and Sustaining Relationships in Retailing  “value” and its pivotal role in retailers’ building and sustaining relationships  customer relationships and channel relationships in today’s highly competitive marketplace  the differences in relationship building between goods and services retailers  impact of technology on relationships in retailing  retailers’ ethical performance and relationships in retailing

15
Relationship Retailing Seek to establish and maintain long-term bonds with customers, rather than act as if each sales transaction is a completely new encounter – Concentrate on the total retail experience – Monitor satisfaction – Stay in touch with customers

16
Effective Relationship Retailing Use a win-win approach – It is harder to get new customers than to keep existing ones happy Develop a customer database – Ongoing customer contact is improved with information on people’s attributes and shopping behavior

21
Selected Kinds of Retail Goods and Service Establishments Durable Goods Stores: Automotive group Furniture and appliances group Lumber, building, and hardware group Jewelry stores Nondurable Goods Stores: Apparel group Food group General merchandise group Gasoline service stations

27
4 UNIT 4 Retail Institutions by Ownership  ways in which retail institutions can be classified  retailers on the basis of ownership type and examine the characteristics of each  methods used by manufacturers, wholesalers, and retailers to exert influence in the distribution channel

35
6 UNIT 6 Web, Nonstore-Based, and Other Forms of Nontraditional Retailing  single-channel and multi-channel retailing  the characteristics of the three major retail institutions involved with nonstore-based strategy mixes: direct marketing, direct selling, and vending machines  the emergence of electronic retailing through the World Wide Web  two other nontraditional forms of retailing: video kiosks and airport retailing

38
Nontraditional Retailing  Nontraditional retailing also includes formats that do not fit into the store and non-store based categories:  Video kiosks  Airport retailing

39
Direct Marketing  Customer is first exposed to a good or service through a nonpersonal medium and then orders by mail, phone, fax, or computer  Annual U.S. sales exceed $235 billion  Other leading countries include * Japan * Germany * Great Britain * France * Italy

46
Top Reasons for Leaving an Apparel Store Without Buying  Cannot find an appealing style  Cannot find the right size  Nothing fits  No sales help is available  Cannot get in and out of the store easily  Prices are too high  In-store experience is stressful  Cannot find a good value